Research Paper on:
Exponential Smoothing /A Case Study

Unformatted Sample Text from the Research Paper:
Exponential smoothing uses a weighted average of past values to make an informed forecast. The more current the value, the more weight it gets, while the values in  the past get assigned less weight. This weighting scheme is determined by the choice of a smoothing constant. This constant can be chosen by observing historical data or  by experimenting with several numbers. Exponential forecasts are useful in forecasting any values in which past records are expected to continue. Providing forecasts at regular intervals such as  for demand for services or goods is another use for exponential smoothing. When random fluctuations in data obscure the trend an exponential forecast can trace an underlying pattern for  a value. Examining the Forecasting Need for the Montauk Hotel Resort The Montauk Hotel Resort, located in Montauk Point in Long Island, New York, has seventy modern  guestrooms. The hotel manager, Linda Bianco, keeps track of room utilization using the forecast method of exponential smoothing by recording the average biweekly occupancy rate throughout the year.  The data that is provided in this method is used to schedule staff and order food and supplies for the guests. The need for forecasting in a business such  as this one is obvious. Using data that follows a measure of central tendency provides fairly accurate short-term forecasts of values by extrapolating past data. The ability  to accurately forecast by using the exponential smoothing technique helps keep the Montauk Resort running efficiently. By not over staffing or having too much inventory on hand at any  one time, costs are able to be kept to a minimum. This is especially important in the case of keeping perishables such as groceries in stock. While it